Financial position of general government improved by EUR 0.2 billion in the third quarter

In the third quarter of 2018, consolidated total general government revenue grew by EUR 0.8 billion from the corresponding quarter of the previous year. Consolidated total expenditure increased by EUR 0.6 billion from the previous year’s corresponding quarter. The difference between revenue and expenditure, that is, the financial position (net borrowing) of general government improved by EUR 0.2 billion. Total revenue increased by 1.2 per cent from the previous quarter. Total expenditure grew by 1.2 per cent from the previous quarter. In the third quarter of 2018, general government deficit (net borrowing) stood at EUR 0.9 billion. These data derive from Statistics Finland’s statistics on general government revenue and expenditure by quarter. General government is comprised of central government, local government and social security funds.

General government’s net lending (+) / net borrowing (-), trend

Changes from the respective quarter of the year before

Examinations of year-on-year changes are made with figures unadjusted for seasonal variation. In the third quarter, central government's total revenue amounted to EUR 13.3 billion and total expenditure was EUR 14.4 billion. Central government's total revenue went up by 3.4 per cent from the respective quarter of the year before. Correspondingly, central government's total revenue went down by 0.5 per cent from the respective quarter of the year before. The difference between revenue and expenditure, that is, the central government deficit was EUR 1.1 billion.

Local government's total revenue was EUR 11.8 billion in the third quarter. It increased by 1.2 per cent from the respective quarter of the previous year. The revenue items that increased most were income taxes. In turn, the revenue items that diminished most were property income received and sales of non-market products. Local government's total expenditure was EUR 12.2 billion in the third quarter. It went up by 2.8 per cent. The expenditure items that grew most were other intermediate consumption and wages and salaries. The difference between revenue and expenditure, that is, the deficit (net borrowing) of local government grew by EUR 193 million and amounted to EUR 376 million.

Social security funds include employment pension schemes and other social security funds. In the third quarter, total revenue of employment pension schemes amounted to EUR 7.3 billion and total expenditure was EUR 6.8 billion. Total revenue increased by EUR 0.3 billion or by 4.5 per cent from the corresponding quarter in the year before and total expenditure grew by EUR 0.1 billion or by 2.1 per cent. The revenue items that grew most were social contributions received, and in expenditure, paid social benefits other than social transfers in kind. The difference between revenue and expenditure, that is, the surplus (net lending) of employment pension schemes went up by around EUR 0.2 billion from the corresponding quarter in 2017 and amounted to EUR 0.5 billion.

Other social security funds' total revenue was EUR 4.6 billion in the third quarter. Total revenue decreased by 7.8 per cent from the corresponding quarter of one year ago. The fall in revenue was influenced by the reduction in employers’ social contribution rate and lower income transfers from central government than one year ago. The fall in expenditure is particularly explained by lower expenditure on compensation for loss of earnings. The expenditure of other social security funds amounted to EUR 4.5 billion and it fell by 2.0 per cent from the quarter last year. The difference between revenue and expenditure, that is, the surplus (net lending) of other social security funds was EUR 48 million in the third quarter.

Changes from the previous quarter

Examinations of changes from the previous quarter are made with seasonally adjusted figures. Central government's total revenue went up by 0.8 per cent from the previous quarter. Central government's total expenditure increased by 0.3 per cent from the previous quarter.

Local government's total revenue went up by 1.0 per cent from the previous quarter. Local government's total expenditure also rose compared with the previous quarter by 0.7 per cent.

Employment pension schemes' total revenue went up by 1.1 per cent and total expenditure grew by 1.6 per cent from the previous quarter. Other social security funds' total revenue decreased by 1.5 per cent and total expenditure fell by 0.3 per cent from the previous quarter.

The data for the two latest years are preliminary and will become revised as annual national accounts data are revised. Seasonally adjusted and trend time series have been calculated with the Tramo/Seats method. Seasonally adjusted and trend time series always become revised against new observations irrespective of whether the original time series becomes revised or not. Further information on the seasonal adjustment method: http://www.tilastokeskus.fi/til/tramo_seats_en.html As the time series of annual national accounts become revised, the time series of this set of statistics will also be revised. These data are based on the data sources available by 12 December 2018. The data will be next revised on 15 March 2019.

Source: General government revenue and expenditure,3rd quarter 2018. Statistics Finland

Inquiries: Jouni Pulkka 029 551 3532, Meri Ruuskanen 0505053186, rahoitus.tilinpito@stat.fi

Director in charge: Ville Vertanen

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Appendix tables

Appendix table 1. Change in general government revenue and expenditure 2018/3 (20.12.2018)

Figures

Appendix figure 1. Social benefits other than social transfers in kind (20.12.2018)
Appendix figure 2. Actual social contributions (20.12.2018)
Appendix figure 3.Current Taxes on Income, Wealth, etc., trend (20.12.2018)
Appendix figure 4. Taxes on Production and Imports (20.12.2018)
Appendix figure 5. Total revenue, trend (20.12.2018)
Appendix figure 6. Total expenditure, trend (20.12.2018)
Appendix figure 7. Final Consumption expenditure, trend (20.12.2018)
Appendix figure 8. Gross savings, trend (20.12.2018)

Revisions in these statistics

Revisions in these statistics (20.12.2018)

Updated 20.12.2018

Referencing instructions:

Official Statistics of Finland (OSF): General government revenue and expenditure by quarter [e-publication].
ISSN=1797-9382. 3rd quarter 2018. Helsinki: Statistics Finland [referred: 22.11.2024].
Access method: http://www.stat.fi/til/jtume/2018/03/jtume_2018_03_2018-12-20_tie_001_en.html